Banks: The closure of branch stores is evolving into an “epidemic”

The four systemic banks National, Alpha Bank, Piraeus and Eurobank are expected to close more than 120 bank branches throughout the country in 2022.

According to the plan of the bank administrations, Piraeus plans to close 52 branches, Eurobank 25, National 25 and Alpha Bank 15 bank branches.

Reactions

This fact has provoked great reactions in OTOE bank employee trade union but also in GSEE. The General Confederation issued a statement reacting to the closure of bank branches and talking about “continuing violent contraction of the branch network of systemic banks, mainly in the periphery. This will result in the loss of jobs for citizens in different parts of the country. GSEE refers to the four banks “that have been recapitalized with money from Greek taxpayers”, and notes that their specific strategy “makes it difficult for citizens to access banking services, so necessary for traders who usually lack digital skills.”

Digital transformation

On the part of the banks, it is estimated that the digital transformation leads to the reduction of the branch network, since more than 90% of the classic transactions that took place in previous years at bank counters are now made through alternative networks, while the deposit books have been abolished.

Digitization changes not only the number of store networks, but also its format. Banks turn stores into consulting centers for customer service, while employees also acquire a new role, as it is the customer’s liaison with the bank.

The Bank Association of

According to the statistics of the Union of Banks, in 2010 the network of 19 banks that were active in the Greek market at that time, numbered 4,000 branches and employed 64,000 employees.

By the end of 2020 the number of stores had dropped to 1,620 and the number of employees to 32,000. It should be noted that in 2021 the banks closed 155 branches throughout Greece and for 2022 it is planned to close another 120 branches. It is also noted that the closure of stores is accompanied by voluntary exit programs for employees.